Page 151 - eProceeding - IRSTC & RESPEX 2017

MOHAMMAD FIRDAUS BIN AHMAD / JOJAPS – JOURNAL ONLINE JARINGAN COT POLIPD

Product Features

Customer Acceptance
Place towards Personal Financing
at Bank Rakyat Indera
Mahkota

Customer Service

2. Literature Review

2.1 Product Features
According to Wing S.Chow (1997) A personal loan is by definition an unsecured loan granted to an individual by the bank
for various purposes. Such a loan includes the personal instalment loan, tax, and overdraft accounts. Since it is common
practice by the bank for such loans, no collateral of any kind is required from customer. According to Chan and Ma’s (1990)
found that almost all of the treasurers agreed that physically appearance of the banks had no impact on their selection process
while it is aimed at understanding corporate customer’s behaviour on split-banking, bank-switching, factors that attribute to
patronage, level of awareness, and the usage of banking product and services. They found that corporate customers preferred to
use big and reputable banks, and split banking. Corporate customers would only switch their banks if the new bank were able
to show that the quality of its products and services were more superior to others’. According (Mylonakis, 2007) found that
flexibility, lend amount percent, interest rate and low repayment are the criteria that can influence the selection criteria of loan
by customer. This factor are been conclude after Mylonakis do a questionnaire for 200 respondents about choice criteria among
Greece Bank home loan customers. Hainudin (2008) also do research about home loan and found Shariah principle, lower
monthly payment, and transparency practice, interest free practice and 100 percent financing are the criteria been looking by
customer for home loans. Edris (1997) agree that Shariah base banking product offered are the main reason Islamic banking
been choosing by business firm. Bitner & Zeithaml (2003) stated that satisfaction is the customers’ estimate or service in
whether the product or services are met their needs and expectation. Jalaluddin and Metwally (1999) recommended religion is
not the only selection criteria for small business firm choose profit/loss sharing financing but probability of firm use profit/loss
sharing financing will increase when interest rate increase.

2.2 Place
The customer acceptance towards Islamic baking product is mainly related by certain factors. According from a study
made by Asyraf Wajdi Dusuki and Nurdianawati Irwani Abdullah (2006), there are 12 factors that contribute to consumer
preferences towards Islamic financing included for this study are: financial product price, customer service quality (fast and
efficient service), convenience (e.g. available parking space, interior comfort), location being near home or work, friendly
personnel, knowledgeable and competent personnel, Islamic working environment, economic and financial reputation, respect
for human rights, Islamic reputation and image, involvement in the community and environmental practice and impact. Data
were collected from Bank Islam Malaysia Berhad (BIMB) and Bank Muamalat Malaysia Berhad (BMMB) in four different
states of Malaysia, Kelantan, Penang, Kuala Lumpur and Johor, representing four main regions namely Eastern, Northern,
Central and Southern respectively. The fact revealed by this study is that the most important factor that contributes to
consumer preferences towards Islamic financing is quality of services provided by Islamic banks.

2.3 Customer Service
Findings by Sudin Haron, Norafifah Ahmad and Sandra L. Planisek (1994), shows that the most important factor
considered by people when selecting their financial institutions is fast and efficient service and friendliness of bank personnel.
They also divided respondent to Muslims and non-Muslims. Muslims and non-Muslims give different finding about the factors
that influencing them choosing their bank. Other factors that considered in this study are reputation and image of bank and
reception received at the bank. A study was conducted by Haron (1994) in Malaysia found that the customer will consider
certain factor before they use facility or perform any transaction in bank. The top five factor that will consider by Malaysian
Muslim when selecting their bank are 1) fast and efficient services 2) speed of transactions 3) friendliness of bank personnel 4)
confidentiality of bank and lastly 5) knowledgeable about the needs of customers. However the non-Muslim customers will
consider otherwise.

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